Hi all, I need some advice re IP#2. It was bought about 16 months ago with good intentions to build a unit out the back of the existing dwelling (looked good on paper and physically and the agent – friend of the family – said it could be done). I've had 3 local planners look at the site and they have advised it is "unlikely" council will permit a second dwelling.
The issue is the current driveway runs down the RHS side of the block and I have now discovered that I can't simply move the car space to the front of the existing dwelling…so the driveway is the real killer of this project (not to mention my inexperience – lesson learned).
Anyway, I owe about $350k on the property (valued at $350k atm) and it is fetching 5.4% in rent ($18k) however being an investment it is an interest only loan.
What I can not work out, is what to do with this place given that the principal is not going away and each month the rent basically keeps this ship afloat.
What options do I have (other than the obvious being sell) and what do others do in relation to holding an interest only loan on a place that has no room for capital improvement and is at the mercy of the market?
Thanks in advance.
Do not try to do it as a "hammerhead" allotment. Instead try to do it as a group dwelling where each dwelling has common property "the driveway" and you have your garage/carpark for the 1st house at the rear of the first house.
alternatively you could try and get approval for a cross over at the front of the 1st house for your 2nd non enclosed carpark (i assumed the house was a 3 br house) and then once that is a approved submit plans for the 2nd rear dwelling. If you want to PM the address of the property i can have a look and see if you do have options or not.
Btw just for future reference, even if the agent was your Mum, don't believe them. Do your own due diligence.
Don't rule out the dual occ, most council's will accept minor variations to development controls. Once hard stand car space in front of the existing building line could well be supported if you provide adequate justification. Landscaping to soften the impact wouldnt go astray.
Thx wilko – PM sent and toally agree about the own due diligence (was pointing out that I have made that mistake and learnt from it).
Good thinking jimchap re landscaping.
What are the next steps from here? Do I engage a planner and submit to council…or?
First timer obviously so please start from the top. Many thanks in advance.
I wouldnt rush out to see a town planner yet; dual occupancies usually are not very complex applications, you could do a lot of your own research. First step is to obtain a copy of the Local Environment Plan and the Development Control Plan for your Council area. They are quite hefty documents but they will have specific sections that are relavent to your sort of proposal. Have a read through them (take your time with this). Once you have done this then ring up the Council and ask to speak to the Duty Planner, they can answer general queries regarding your proposal and give you some preliminary advice on whether it is feasible.
When it comes to lodgement of the DA I wouldnt go for a town planner; the job isnt complex enough to warrant that (i assume its just a dual occupancy development from your initial post). Engage a good draftsmen from the local area with enough experience to handle lodgement of the DA; or you could even do it yourself.
What about a granny flat?
I’m under the impression the rules are different if you aren’t actually subdividing. Then perhaps your property would become cash flow positive and pay down your principal if that is what you desire.
Tommytucker, I believe 'granny flat law' exists to ensure that a temporary dwelling is established only for an elderly/ in need of support family member.
I would love to be wrong on this. Where could I find out more info on the rules for granny flats in my area? Local council?
Also are there any special conditions that apply to the sale of a property with a granny flat?
AM interested to continue the granny flat investigation however I wonder how an agent would find two tenants to fill the house and flat…or is that even something they would consider? How to split utility bills etc – could get messy but I am sure it is done and is not the end of the world.
Back to the original post – re the principle not budging, what do others do in this situation?
It's illegal to rent them out in Vic, SA and QLD I believe, other states is fine as far as I'm aware. Youd have to seek legal advice on that.
Am in Vic which is why I never considered it, having had a neighbor house his gran years ago he mentioned even doing that was a nightmare and she was elderly family.
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